ACCT 302: A Cost Accounting Quiz!

9 Questions | Total Attempts: 161

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ACCT 302: A Cost Accounting Quiz!

With Cost Accounting having a lot of variables that are in play, that are all involved in the evaluation for the entities management to make informed decisions on cost and apportionment of each business unit, cost accounting principles are applied to assist in the process from collection classification and analysis. Can You Pass This ACCT 302: Cost Accounting Exam?


Questions and Answers
  • 1. 
    Because of a cost-benefit trade-off, some direct costs may be treated as indirect costs. 
    • A. 

      True

    • B. 

      False

  • 2. 
    A cost may be direct for one cost object and indirect for another cost object.
    • A. 

      True

    • B. 

      False

  • 3. 
    Assigning indirect costs is easier than assigning direct costs. 
    • A. 

      True

    • B. 

      False

  • 4. 
    Improvements in information-gathering technologies are making it possible to trace more costs as direct. 
    • A. 

      True

    • B. 

      False

  • 5. 
    The smaller the amount of a cost the more likely it is economically feasible to trace it to a particular cost object.
    • A. 

      True

    • B. 

      False

  • 6. 
    A direct cost of one cost object can be an indirect cost of another cost object.
    • A. 

      True

    • B. 

      False

  • 7. 
    The cost of electricity used in the production of multiple products would be classified as an indirect cost. 
    • A. 

      True

    • B. 

      False

  • 8. 
    The broader the cost object definition, the higher the proportion of direct costs are of total costs.
    • A. 

      True

    • B. 

      False

  • 9. 
    The distinction between direct and indirect costs is clearly set forth in Generally Accepted Accounting Principles (GAAP). 
    • A. 

      True

    • B. 

      False

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